How Mobile Advertising Boosted Facebook's Revenue

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July 23 (Bloomberg) -- Altimeter Group Analyst Rebecca Lieb examines Facebook’s second quarter sales rise to two-point-nine-billion dollars through mobile advertising. She speaks with Carol Massar, Praveen Menon and Alex Barinka on “Taking Stock.”

Those numbers from face book.

Investors seem to like them.

That's right.

Revenue growth above 60%. beating analyst estimates.

It's surprising because i think analyst expected softer numbers coming in.

The other big number is earnings.

If you look at margin that is an all-time high.

If you look at their expenses only growing 20%. every strong margins, very strong revenue.

Been getting a lot of earnings.

Some are ok.

Some are better than forecast.

How does facebook fit in what we see so far?

Facebook is looking to be wow ed.

Facebook saying mobile ads are growing.

That in thing you look at.

Facebook messed up.

A word in the platform.

The numbers we saw today shows they are really moving fast.

Facebook has made terrific gains.

I think they are also seeing traction.

They have a lot of new different mobile product.

We are going to see a lot more products with the application.

This is good news.

Investors want to see it pay off.

I don't think we are going to see it payoff.

We are going to see even more emphasis.

Let's not forget the instagram acquisition.

Exit this time what is it we want to see a continuation of?

It has to continue delivering.

That's correct.

One thing we continue to look at is the core business.

Another big driver will be video advertising.

If you look at how much revenue they generate, that is $20 to $30. if you look at the average online it is low single digits.

The payoff is much higher than facebook had before.

How does this square with what we saw from yahoo!? they still struggle to find their way there.

Yahoo!

Has struggled to find their way there with faith but saying, we promised we wouldn't continue to bombard the newsfeed with more ads.

The quality of the advertising needs to be such that businesses will pay more for it.

Maybe that something yahoo!

Will consider.

It's going to be quality and balancing with not imparting the consumer with an overwhelming amount of ads.

You have got google.

You have got twitter.

You have a lot of folks out there.

What does faith that need to be careful that they can go after the brands?

User experience is paramount.

I was impressed to see user engagement is up day over day and month after month.

We saw incredible growth on the platform with one point read billion users.

These but is the biggest media channel -- facebook is the biggest media channel in history.

Not even in china are we eating any a half a billion users.

-- are we seeing a billion users.

That's what we are going to look or.

That is a mobile audience.

They are mobile consumers.

They are on phones.

They are on tablets.

They are leapfrogging.

What is the number one question you want to be asking mark zuckerberg?

It something they pay off earlier.

We have to give them the benefit of the doubt.

Two and a half years ago mobile was zero.

Now it is to do.

You have to believe and give them trust.

I think we have seen investors to that.

I think it's a matter of time.

You bring up a good point.

Just the year ago they were in mobile.

You look at whether management is nimble or not.

They build up their platform and really opened the focus on developers.

They have brought in all these users, but that poses a challenge for them.

A have nearly half the population on their platform.

What is next?

Keeping nimble is something investors are going to pay attention to as well.

What they also want to attract young users -- they also want to attract young users as well.

You have to be 12 or 13 to even have a facebook account.

As well as monetization.

Facebook is dipping a toe deeper into the e-commerce arena.

They are making more substantive moves into selling real goods, as is twitter.

This is going to be a huge platform of growth.

What would be the thing you would like to ask?

I want to know more about brand advertising.

With these advertisers, were they really -- where they really make sense is brand advertisers.

You want coca-cola, pepsi, automotive.

What is facebook doing to attract those away?

Backs we know those are the folks who really spend the money

This text has been automatically generated. It may not be 100% accurate.

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